Ex-Im Bank Update

Ursula M. Wegrzynowicz

Trade Acceptance Group, Ltd.

October 8, 2015

Who is Ex-Im Bank?

Mission: Create and sustain American jobs by increasing U.S. export sales

• Official Export Credit Agency (ECA) of the U.S. Government, founded in 1934

• Sunset agency requiring Congress to reauthorize the Bank.

• Charter expired June 30th

• Self-sustaining

• ECA’s, like Ex-Im, are governed by OECD

•

Mandates from Congress

No negative impact on the U.S. economy Not to compete with the private sector 20% of support must be for small business by

dollar volume U.S. content minimums; range from 51-85% Positive environmental impact Restrictions on military equipment and buyers Restricted countries Special assistance to Small Businesses U.S. shipping rules

Why did Ex-Im Bank lapse?

• Rep. Jeb Hensarling (R-TX), Chairman of the House Financial Services Committee, has refused to consider the stand alone legislation

• Ex-Im Bank considered to be “corporate welfare”• Private sector insurers & banks will pick up where

Ex-Im left off• Ex-Im benefactors can finance their own sales• First time Ex-Im Bank lapsed in 81 years

Where we are today• Rep. Jeb Hensarling (R-TX), Chairman of the House Financial

Services Committee, has refused to consider the stand alone legislation

• A majority of Senators (67) voted in favor of Ex-Im Bank’s reauthorization in July; legislation was attached to Highway Trust Fund Bill

• U.S. House passed their own version of Highway Trust Fund Bill, which did not include Ex-Im Bank legislation

• Rep. Fincher (R-TN) & Rep. Kinzinger (R-IL) have signed a petition to debate/vote on Ex-Im:

“A discharge petition is a means of bringing a bill out of committee and to the floor for consideration without a report from the committee and usually without cooperation of the leadership by "discharging" the committee from further consideration of a bill or resolution.”• Discharge petition will “mature” on 10/21• Success of petition more likely because introduced

by the majority

Trade Acceptance Group & Ex-Im

• Ex-Im Bank Broker of the Year in 2002, 2008 and 2012 - always among top 3 most active

• TAG represents (as their Broker) over 51% of Ex-Im Bank’s recognized exporting companies in Wisconsin

• Principals of TAG: former Ex-Im Small Business Advisory Committee member & employees

• 2015 President’s “E” Award for Export Service